File sharing methods and systems

ABSTRACT

The present invention provides methods and systems for legally sharing files in a peer-to-peer network on the internet in a manner that compensates the content owners, artists, authors and/or programmers, and the like. Methods of the present invention may include incentive programs, which allow users to earn credits that may be redeemable for later file downloads and/or for merchandise at an online store or other compensation.

CROSS REFERENCE TO RELATED APPLICATIONS

This application claims the benefit of U.S. Provisional PatentApplication Ser. No. 60/661,390, filed Mar. 14, 2005.

FIELD OF THE INVENTION

The present invention provides methods and systems for legally sharingfiles on the internet in a manner that compensates the content ownersand optionally the artists.

BACKGROUND OF THE INVENTION

Billions of music, movies, TV shows, games, and software files areillegally downloaded through peer-to-peer (P2P) websites. Because ofthis illegal downloading, creators (such as artists, authors, andprogrammers) and content owners are losing potential income, which isresulting in, inter alia, record labels merging and downsizing, artistsnot having their contracts renewed, and creators and content owners notbeing compensated for this illegal use of copyrighted material.

Websites that allow illegal P2P downloading/uploading also have problemsassociated with poorly encoded downloads, low bandwith, junk softwareand create a high risk to users of downloading malicious files, such asa computer viruses, Trojan horses, spyware, pornography and/or spooffiles. In addition, users of these websites, run the risk of civil orcriminal legal action.

SUMMARY OF THE INVENTION

The present invention provides file sharing methods and systems, whichprovide incentives to users to purchase files from a legal peer-to-peernetwork, and which compensates content owners and/or creators.

The present invention also provides various methods, systems, andfeatures attendant to such a legal peer-to-peer network, such asproviding premium files, scanning for malicious files, chat rooms, a“this-lane closed” feature and other features.

The present invention also provides machine readable mediums andcomputer readable program products relating to the disclosed methods andsystems.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram of a file sharing system according to certainembodiments of the invention.

FIG. 2 is a flow diagram of an incentive program offered by a P2Pservice provider according to certain embodiments of the invention.

FIG. 3 is an architecture diagram of a data processing system suitableas a host for a P2P server in accordance with certain embodiments of theinvention.

FIG. 4 is a flow diagram of an incentive program such as a “two for one”incentive program offered by a P2P service provider according to certainembodiments of the invention.

FIG. 5 is a flow diagram of an incentive program such as a “three forone” incentive program offered by a P2P service provider according tocertain embodiments of the invention.

FIG. 6 is a flow diagram of an incentive program such as a “two for one”incentive program offered by a P2P service provider according to certainembodiments of the invention.

FIG. 7 is a flow diagram of an incentive program offered by a P2Pservice provider according to certain embodiments of the invention.

FIG. 8 is a flow diagram of an incentive program offered by a P2Pservice provider according to certain embodiments of the invention.

FIG. 9 is a flow diagram of an incentive program offered by a P2Pservice provider according to certain embodiments of the invention.

FIG. 10 is a flow diagram of an incentive program offered by a P2Pservice provider according to certain embodiments of the invention.

FIG. 11 is a flow diagram of a drop box option according to certainembodiments of the present invention.

FIG. 12 is an example of a possible screen shot from the uploader'sperspective during the process of a lane closing according to certainembodiments of the present invention.

FIG. 13 is an example of a possible screen shot from the downloader'sperspective during the process of a lane closing according to certainembodiments of the present invention.

FIG. 14 is an example of a possible screen shot from the downloader'sperspective during the process of a lane closing according to certainembodiments of the present invention.

FIG. 15 is a flow diagram of an incentive program such as a “three forone” incentive program offered by a P2P service provider according tocertain embodiments of the invention.

FIG. 16 is an example of a possible screen shot of a discographyallowing a sort feature according to certain embodiments of the presentinvention.

DETAILED DESCRIPTION OF THE INVENTION

The aspects, advantages and other features of the invention will becomeapparent in view of the following detailed description, which disclosesvarious non-limiting embodiments of the invention. In describingembodiments of the present invention, specific terminology is employedfor the sake of clarity. However, the invention is not intended to belimited to this specific terminology. It is to be understood that eachspecific element includes all technical equivalents that operate in asimilar manner to accomplish a similar purpose.

The present invention provides methods of exchanging files and ofregulating the legal exchange of files via a peer-to-peer network.Methods of the present invention may include various incentive programs,which encourage users to continue downloading files, in exchange forcredits that may be redeemed for future file downloads and/ormerchandise purchases and/or cash. Methods of the present invention alsocompensate content providers and/or artists for each file exchanged,even where the file is a “free” file redeemed by a user using credits.

The present invention also provides systems that include a servercoupled to a database, where the database may include informationregarding files, such as whether the files are authorized and availablefrom one or more members of a peer-to-peer network.

As used herein, “a” or “an” may mean one or more. As used herein,“another” may mean at least a second or more.

As used herein, the terms “artist” and “creator” are intended toencompass both the singular and plural forms, and include musicians,songwriters, authors, programmers, and the like. The artist or creatormay or may not be the copyright holder, content owner or an authorizedlicensor of the work. The terms “content owner,” “copyright holder,”“authorized licensor” are all used somewhat interchangeably herein tomean the person or organization that is capable and authorized toprovide a license or sublicense to the file. An authorized licensor mayinclude for example a label company, software company, artist, etc. Itshould be noted however, that an artist is not necessarily an authorizedlicensor, and in many instances is not an authorized licensor, such asin the case where the artist has a recording contract and the label ownsthe copyrights and rights to distribute the work.

The term “files” as used herein is intended to include, but is notlimited to any form of digital content now existing or that may later bedeveloped, including, but not limited to files containing, music,movies, games, television programs, video games, videos, software,podcasts, advertisements, artwork, ring tones, literature, photos, andthe like, even if in compressed or encrypted formats.

The terms “authorized files” and “legal files” are used interchangeablyherein to mean files that may be legally shared via the file sharingsystems and methods of the present invention, which include thefollowing: (1) any material that is not copyrighted (either formallyregistered via the U.S. copyright office, or by common law), or (2) anymaterial for which one or more copyrights (formally registered or bycommon law) exist and the copyright owner has licensed the copyright tothe peer-to-peer service provider. Authorized files may also be filesfor which permission is only granted for release or transfer after acertain date or within a certain time frame. Accordingly, the authorizedlicensor can control the timing of the release of certain files and/orremoving certain files from further distribution. According to methodsof the present invention in which authorized file become authorized asof a certain date (after the date the request is received), a user isnot allowed to download the file until the date the file becomesauthorized. Conversely, if files are authorized only up until a certaindate, the file must be downloaded prior to that date.

The terms “virus protection software,” and “virus software,” are usedinterchangeably herein, and as these terms are used throughout thisentire application, they are intended to include software capable ofprotecting against any malicious files (including malicious software),including, but not limited to, viruses, spyware, adware, spoof files,pornography, cuckoo eggs and the like. Virus software updates may berequired for sharing files. They may not be required, however, to browsethe discography and listen to snippets of music, as these activities donot put others at risk of contracting any computer viruses from theuser.

According to certain embodiments of the invention, an authorizedlicensor, artist(s), content owners/label companies, premium contentproviders (such as providers of CDs, games, software, etc, anon-limiting example of which is itunes), copyright owner, and the like(which are not mutually exclusive), and/or one or more end users (i.e.,users who upload and/or download files), all desiring to receive legalfile sharing services and benefits, may register with a peer-to-peerservice provider over a data communications network (such as, forexample, the Internet). The registration process may create an accountfor each registering entity.

Accounts may be maintained and automatically updated by the P2P serviceprovider with each file sharing transaction. For example, upon atransaction, the P2P service provider may collect and store dataregarding the transaction (such as information regarding who the filewas transferred from and to, the artist, the provider, the copyrightholder, etc) and associate such data with the accounts of the end users,artist(s), content owner(s), and/or content provider(s), etc . . .

Upon registering with the P2P service provider, an account may becreated for the end user and the end user becomes a member of the P2Pservice. User accounts may include information regarding a user'spreferences for the displays when the user logs onto the P2P website,downloads, payment options (e.g., credit card number or paypalinformation), name, address, and the like. Accordingly, the methods andsystems of the present invention, may have built in security measures toprevent hacking. Accounts may also be set up such that the user/memberremains anonymous, for example, by using only an e-mail address andusername to set up the account. In this situation, the user would not beable to order merchandise or redeem credit from an online store, asdiscussed further below, because the store would not have a name oraddress to which it would send the ordered items.

According to certain embodiments of the invention, end users may eachhave a device equipped with a P2P or like communications capability forsharing files with each other. Thus, two or more end user devices form aP2P or like network.

Accordingly, the present invention includes methods, which include oneor more users registering with a peer-to-peer service provider over adata communications network, requesting at least one file from thepeer-to-peer service provider, and if the file is licensed to thepeer-to-peer service provider, downloading the file via the serviceprovider.

Also included are methods that include receiving a request from a firstuser for at least one file; determining if said file is an authorizedfile from an authorized licensor; searching for a second user possessinga copy of said file; allowing said first user to download said file fromthe second user if said file is authorized and a second user possessinga copy of said file is located; processing a debit of an accountcorresponding to said first user; processing a credit of an accountcorresponding to said second user, wherein said credit is redeemable forcompensation, which may include merchandise or monetary compensation,but not redeemable for files; and processing a license fee to saidauthorized licensor. If a second user possessing a copy of said file isnot identified, the method may include downloading a copy of the filefrom a premium content provider, rather than from a second user.

Further included are methods that include receiving a request from afirst user for at least one file; determining if said file is anauthorized file from an authorized licensor; searching for a second userpossessing a copy of said file; allowing said first user to downloadsaid file if said file is authorized and said second user possessing acopy of said file is located; charging said first user a fee for saidfile; processing a credit of an account corresponding to said seconduser; and processing a license fee to said authorized licensor.

These methods can be repeated with one or more first users until thesecond user has accumulated a plurality of credits, which can beredeemed for at least one file from a third user, or which can beredeemed for merchandise or other compensation.

Also included are methods that include receiving a request from a firstuser for at least one file; determining if said file is an authorizedfile from an authorized licensor; searching for a second user possessinga copy of said file; and determining if the downloading is a directtransaction or an indirect transaction. If the transaction is a directtransaction, the method includes charging said first user a fee fordownloading said file, and compensating said second user with creditthat may be redeemed for files or merchandise or other compensation. Ifthe transaction is an indirect transaction, the method includesdetermining whether said first user has accumulated enough file creditsto purchase said file, and if said first user has accumulated enoughfile credits, authorizing a download of said file and debiting anaccount associated with said first user for redeemed file credits, andcompensating said second user with credit that may be redeemed formerchandise or other compensation, such as monetary compensation, butnot for files. These methods further include allowing said first user todownload said file; and compensating the authorized licensor. Thesemethods may further include compensating at least one artist associatedwith said file. These methods may further include compensating the firstuser with credit.

Such methods may also include registering at least one of the first andsecond users over a data communications network. Methods may furtherinclude accessing a database to determine if the file is an authorizedfile, and searching the database for a second user or premium contentprovider possessing a copy of said file. Further modifications andfeatures of methods in accordance with the present invention areprovided herein.

The P2P service provider may take the form of a server coupled to adatabase with information of the files available from the members of theP2P network (i.e., uploading/downloading end users), which informationmay be updated for example, after each transaction. According to theseembodiments, the P2P service provider may monitor exchanges between themembers of the network, and ensure that only files that have beenlicensed to the P2P service may be exchanged between end users.Alternatively, the P2P service provider may not be coupled with adatabase, but is otherwise capable of obtaining such information fromthe end user's device.

The P2P service provider may maintain one or more lists of allauthorized licensors and the file(s) and transactions associated withsuch licensor. By keeping track of all transactions involving aparticular artist or owned by a particular content owner, the P2Pservice provider may ensure compensation of the content owners/labelcompanies and/or artists for any file sharing transactions.

The present invention also includes systems comprising a server coupledto a database; wherein said database includes information regardingfiles, which may or may not be authorized and may or may not beavailable from one or more members of a peer-to-peer network; andwherein said information is updated upon a transaction in which one ormore of said available files is exchanged between one or more members ofthe network. According to such systems of the invention, the server maybe adapted to monitor exchanges between the members of the network, andadapted to control said exchanges such that only files licensed to thepeer-to-peer service provider and/or only files that free of maliciousfiles may be exchanged between end users. The systems of the presentinvention may further include computer devices associated with one ormore authorized licensors of content and/or computer devices associatedwith one or more end users. The server may include software capable ofproviding a digital fingerprint for each file, and capable of scanningfiles for a digital imprint, as discussed further below. The server mayalso include software capable of monitoring for unauthorized filesand/or detecting malicious files (including malicious software), such asviruses, cuckoo eggs, spyware, adware, pornography, spoof files, and thelike.

By way of non-limiting example, FIG. 1 is a block diagram of a filesharing system according to certain embodiments of the invention. Thesystem according to the embodiments depicted in FIG. 1 includes apeer-to-peer (P2P) service provider coupled to computer devicesassociated with one or more authorized licensors of content, artist(s),content owners/label companies, premium content providers, and at leastone end user, over a data communications network. It should beunderstood that systems according to the present invention need notinclude all of the depicted computer devices.

FIG. 1 further includes a discography or other form of content database,which is the database coupled to the service provider's server. Thediscography contains information regarding other users' files todetermine if a file sought by a user is authorized and available fromanother user and/or information regarding whether the file is authorizedand available from a premium content provider.

A search engine may be used by users to match requests for a song orartist with available songs and artists. With an ever-expandingdiscography or other form of content database, a display of thediscography may inform users of which files are authorized or licensedto the service and currently available from other members in thenetwork, and which files are not. Licensed works may be listed forexample, in bold black letters, while unlicensed works may be listed inred. It should be noted however, that any method of distinguishinglicensed from unlicensed works may be used.

After a file is licensed, members can freely trade it on the service. Asindicated above, only authorized files would be allowed to be sharedbetween members. An example of a way to control file sharing to onlyauthorized files is to use filtering technology to prevent unauthorizeddownloads. Such filtering technology may also allow content owners tocontrol the timing of releases. If a requested file is not authorizedfor release in the system, the user may receive a message to thataffect, and may be sent a request form for them to pre-order the filefor when it becomes available, particularly if it is expected that filewill be authorized or released in the future.

The discography or other form of content database software display maylist for example, the band name, song title, album, label, release dateand other identifying features. Which information is listed and theorder in which it is listed may appear in a default format or may bechosen by the user. For example, a user may choose to view the band namefirst and then the song title, but not want the album or any otherinformation listed on his or her display, so as to allow room for thelonger song titles to be fully displayed. The discography display mayinclude a “Sort Feature” allows members to organize by first and lastnames, song title, album title, label, etc. In the case of movies, forexample, a user may wish to view only the movie title, stars, and yearof release. The sort feature would allow the user to sort movies by abiography database of their favorite actor. Accordingly, the presentinvention includes allowing a user to sort various criteria of filesbefore requesting at least one file. This feature is also useful for theuser's personal database management. For example, after the userdownloads and/or uploads more than one file such that said first userhas a database of at least two files, the user may sort the database byany number of criteria. A non-limiting example of a screen shot ofvarious features that may be sorted is depicted in FIG. 16.

The discography software may also display the digital formats, such asAAC, Wave or MP3, so they are visible to the downloader and thedownloader can choose which format they would like to download. Inaddition, file resolution and/or size may be displayed, and it may benecessary to require a minimum level of quality to be eligible fortransfer.

The search engine may also include a request feature, which allowsconsumers to request licensing for unlicensed files from the database.Those requests may be forwarded to the artist, manager, publisher andlabel, for example periodically (e.g., monthly) or upon receiving acertain number of requests for licensing, to encourage them toparticipate in the service. Accordingly, if a file being requested isnot yet licensed or authorized, then the methods of the inventioninclude allowing the requesting user to submit a request that the filebecome authorized.

According to certain embodiments of the invention, users may be offeredfree entry to view the database, such that they can browse thediscography for available files. When the consumer finds what they arelooking for in the discography, they can listen to a stand-alone streamof music or video to sample it before purchasing. This stream maycontain for example, a 30 second sound or video snippet (or even shorterfor example, in the case of ring tones), which requires no licensingfees. After registering as a member, users may buy ala Carte as theywish. No monthly fees or cover charge is required for this type ofmembership. Accordingly, the methods of the present invention mayinclude allowing a user to access a sample of a file before or afterregistering as a member.

Alternatively, members can pay a monthly subscription fee to hear theentire songs, video, movie, etc . . . through a premium “StreamingSubscription.” A built in jukebox may be provided or one may be licensedfrom another company such as i-tunes, musicmatch, etc. According tothese embodiments, the methods of the present invention may includeallowing a user to access an entire file after registering as astreaming subscription member.

If a user is interested in buying a song or other file, they can chooseto purchase and download a file either directly from a content provider,such as a premium content provider, or by searching the P2P service formatching titles on other uploading shared folder hard drives. A programcalled “Geo-coding” may speed downloads and reduce bandwidth costs bymatching searches by the member requesting a file to one of thegeographically closest members having the file being searched for.Accordingly, methods of the present invention may further includeselecting an uploading user/member based on proximity to the requestinguser.

One method for determining geographic proximity may be for example byzip code. According to these embodiments members would provideinformation, for example upon registering for membership regarding theirgeographic location, such as zip code. Their location is then associatedwith their membership such that the database is not only searched for amatched file to the search query, but is further searched to determinewhich other user(s)/member(s) having the matched file is geographicallyclosest to the requesting member. Alternatively, a downloading membermay enter an alternate zip code indicating their location at the time ofthe download, for example if the member is traveling and away from thelocation at which they initially registered. Another method indetermining proximity may be by member IP address. It should beunderstood that according to these embodiments, the user/memberproviding the file need not be the exact closest member having the file,but may be closer than other members capable of providing the file, ascloser proximity may speed the transaction.

To encourage “uploading” members to share their collections of files(such as MP3, .wav, .aaf or any other format of file), according tocertain embodiments there may be no obligation to purchase any files.For example, if the user wishes to remain anonymous, they may do so bynot purchasing any files directly, but by uploading files and waitinguntil other members download enough of the member's songs such that theyhave enough credits to “create an account” or to obtain files usingcredits. Anonymous users may not be able to redeem credits formerchandise, however, because the user may have to be identified toreceive shipments. The user may be limited to only “browsing” untilother members download songs and the member accumulates credits. Thiscreates traffic and loyalty rather than a “roadblock” that may turn somepotential members off when they are asked to pay money to create anaccount.

Users may also remain anonymous by purchasing a prepaid card or giftcard that may allow them to download songs without providing anypersonal information.

According to certain embodiments, members may be required to updatetheir virus protection software each time they log onto the P2P network,or at certain time intervals (e.g., each week, or at the first log ineach day, week, month, etc.) A method of implementing this requirementmay be to scan each member's hard drive for current virus protection andrequire them to update it (if it is not currently up to date) beforeallowing them on the network. If the user does not have virus softwareon their computer, or if they desire different software, the P2P networkmay present software, or present links to software for virus protection.

The present invention includes file sharing methods comprising receivinga request from a first user for at least one file; determining if saidfile is an authorized file from an authorized licensor; searching for asecond user possessing a copy of said file; requiring said first userand/or said second user to have updated virus protection software (fordetecting malicious files); and allowing said first user to downloadsaid file.

If a malicious file or other problem is detected, either or both of thedownloader and uploader may be notified, so they can delete the file,run virus protection programs, and the like to try to prevent furtherdamage to their own computer systems or to others' systems. Accordingly,the present invention may further include steps of scanning for virusesand/or other malicious files and/or informing users of any detectedviruses. Methods of the present invention may include using monitoringsoftware to help ensure that the requestor is receiving the song, movie,game or whatever file they have requested without any unnecessaryspyware or adware. The filtering software can also detect othermalicious files, such as a virus, spyware, pornography, cuckoo eggs,etc. Because the recording industry would approve of the service, theydon't have to plant spoof files.

Because users are made aware through the P2P network that they cannottrade a polluted file, and therefore cannot earn any credits or pointsfor sharing such a file, the user has added incentive to offer/uploadonly “clean” files to the service.

Methods of the present invention may also include determining whether afile is authorized by scanning the file for a digital imprint or“fingerprint” that may aid in controlling the release of files. Softwaremay be used to provide the digital imprint or fingerprint. With thissystem, the mathematical algorithm of the file may be placed in acatalog that contains a discography of an ever-expanding vault of musicand other files. When the software finds a title with a similar name toa request, it may identify the digital fingerprint of the file and matchit against the song in the discography. If the songs match, the softwarewill either change the title of the song on a user's drive to thecorrect title, or send them an automatic E-mail telling them the correctname and encouraging them to correct the titles in their collections toincrease the odds of finding buyers for their songs.

Accordingly, certain embodiments of the present invention may include an“Auto ID Feature”, which reads a file (e.g., the digital fingerprint)that may not be listed accurately on a user's hard drive, CD or CD-R,and matches it to the fingerprint of files in the discography, thenrenames the song or file with the correct title automatically. This maybe referred to as an “auto name” or “auto ID” feature. When a user logsonto the system, the software could scan the files in their “shared”folder. If the names are incorrect, the service may prompt them tocorrect the titles. The software and/or the P2P website may inform usersthat incorrect titles cannot be transferred and will prevent the userfrom earning points.

According to certain embodiments, a tag or extension may be added toeach file as it is transferred through a peer to peer system to identifyinformation associated with the file, including but not limited to,author, artist title, content owner(s), release date, digitalfingerprint, authorization, the original source, a history of ownership,and the like. Methods of the present invention may include scanning oneor more files and verifying that the digital fingerprint in fact matchesat a minimum the artist and title. The method may further includeverifying that the file does not contain any malicious files. Filescontaining malicious files (including malicious software) may befiltered out and/or blocked from the peer-to-peer system.

Certain embodiments of the present invention may include incentiveprograms, which may have several advantages. According to certainembodiments of incentive programs in accordance with the presentinvention, members may be able to accumulate “credits” or “points” thatmay be redeemed for CDs, music related merchandise, more files, and thelike. For example, they may allow members to earn “free music” or “freegames,” etc., which is advantageous to the P2P service provider from amarketing standpoint, and is advantageous to the end user in that theyend up paying less for each file or for merchandise than they mightotherwise pay. Another advantage of the present incentive programs isthat the artist, content owner, or other licensor, would be compensatedfor an upload or download, despite the characterization of the file tothe end user as being “free.” A further advantage of the presentincentive programs, is that by compensating members with “credits”rather than dollars, many interstate and intercontinental tax issues donot come into play. Accordingly, the present invention is furtherdirected to fee-based peer to peer systems, which compensate thelicensors of content, but have certain transactions with no transactionfees (e.g., when credits are being redeemed for files, there are nocredit card fees, paypal fees, and the like). Also encompassed are filesharing methods that include receiving a request from a first user forat least one file, determining if the file is an authorized file from anauthorized licensor, searching for a second user possessing a copy ofthe file, allowing the first user to download the file from a seconduser if the file is authorized, and processing a license fee to saidauthorized licensor, wherein the method includes no transaction fees.

By way of non-limiting example of an incentive program in accordancewith the present invention, a credit system may be implemented withdifferent levels of credits that may be redeemable in different waysdepending on how they were earned. Silver credits for example, may beearned in two different ways: (1) members earn one silver credit forevery 10 files they buy; or (2) members earn one silver credit whenanother member purchases a file from their hard drive. Silver creditsmay be used to purchase merchandise from an online store. When enoughsilver credits have been accumulated, members can purchase filedownloads from the P2P network. For example, according to certainembodiments, two silver credits may be used to purchase one music file.

Gold credits may be redeemed for file downloads, or for merchandise fromthe online store. Because each file may have a different price or value,the number of credits needed to earn a download may vary. A certainnumber of silver credits (e.g., two silver credits) may equal one goldcredit.

Blue credits (otherwise referred to herein as “store credit”) can beaccumulated to purchase merchandise from an online store. Blue creditsare received by a first member when a second member redeems previouslyearned credits to download a song from the first member's hard drive.Because there is no direct purchase generated from this transaction tocompensate the content owner of the song that was redeemed from thefirst member's computer, Blue credits are store credit only and may notbe exchanged for silver or gold credits or used to redeem files fromothers.

In summary, gold or silver credits may be redeemed for files or used asstore credit. But the reverse is not true. Blue credits (or storecredit) may not be exchanged for gold or silver credits or otherwiseredeemed for files.

Merchandise in the online store may include any product, including, butnot limited to, CDs, t-shirts, concert tickets, movie vouchers, phones,subscriptions (such as magazine or satellite radio subscriptions), andMP3 players, and the like. The online store may be a separate entity, oralternatively a storefront where partnerships are formed with companiessuch as Amazon, Best Buy, Borders Books, Ticketmaster Bamzu, AOL andothers. Where the online store is a storefront, the storefront wouldserve as a link through conduit to any website that is set up forpayment. Software may be used to measure and detect the click-through,and may be used to include a payment method that converts the retailprice of the item being purchased into P2P credits (where applicable).Where credits are being used in such a storefront, the online retaileris a partner with the P2P provider and would collect payment from theP2P provider depending on the number of credits used.

Members can also purchase merchandise from the online store directly forcash rather than using credits. The redeeming or purchasing member isresponsible for any applicable taxes, shipping and handling charges onitems redeemed from the Online Store. Store credit may generateadditional profits in that it may encourage members to purchase itemsthat cost more than the amount of store credit they have, or to purchaseadditional items that they might not have found had they not beenencouraged by the store credits to enter the online store. Merchandisemay also be paid for using more than one method, for example by using acertain number of credits and paying the difference using a credit card,paypal, debiting a gift card, or by other method. If members do notredeem any or all of their store or file credits the unredeemed creditsremain as revenue to the P2P provider.

Targeted advertising may appear on webpages for a specific demographicor psychographic the manufacturer is trying to reach. For example, NIKEAIR may want to reach listeners of hip-hop music. Accordingly, NIKE AIRadvertising, links to NIKE AIR products in the online store, links tothe NIKE website, and the like may appear on a page accessed by a userwho has previously downloaded hip-hop music. For example, a banner admay read—“Nike Airs—only 175 credits—click here to redeem.” NIKE maythen either pay for such advertising, advertising may be part of apartnership arrangement and/or the P2P provider may benefit simply byincreased sales from the on-line store. Unlike traditional advertising,these banners may not pop up and block a user's activities, but may bedisplayed in a manner that is welcome by the user in that it suggestshow the user can redeem their credits and receive merchandise “forfree”. Accordingly, in methods of the present invention, at least one ofsaid first and second users may be provided with targeted advertisingbased on, for example, prior file downloads, the user's registrationprofile (such as membership information input by the member), and/ormerchandise redemptions.

Various types and amounts of credits may also be awarded for achieving acertain level of activity in a user's account. Credits may also beawarded for simply setting up an account, or setting up an account in amanner that keeps transaction fees to a minimum for the P2P service, forexample, by the member setting up their account such that charges go toa PayPal or Bitpass escrow account with a minimum balance.

It should be understood that the names of the credits and the ways inwhich they may be earned and/or redeemed may vary in accordance with thepresent invention, so long as the goals are met, i.e., of providingincentives to keep users returning to the network, while fairlycompensating content owners and others.

It is also contemplated that a cash back incentive program might beimplemented rather than credits (or cash in exchange for earnedcredits). However, such embodiments may raise issues regarding whichcurrency to use, as users on the world wide web might be in a variety ofcountries. Also exchange rate issues may arise and possible taxconsiderations may arise.

According to certain embodiments of the invention, revenue from eachfile purchase may be divided as follows, 50% to the content owner/labelcompany, 2% artist bonus, 24% is returned in the way of memberincentives, and 24% to the file sharing service. It should be recognizedthat the percentages and division of income may be adjusted and variedin accordance with the present invention.

The 2% artist bonus is optional and may be paid directly to thecomposers and recording artists for each file that is downloaded. Thisis independent of any money that the artist receives from the contentowner, for example through their recording contracts. Deductions allowedfrom this payment may be from the artist's management company, or theartist's rights organization such as ASCAP, BMI, and SECAC collectingthe fees with an accounting record going to their business manager. Theartist who created the work for sale may be the artist who is directlycompensated and then he or she is responsible for compensating any othersongwriters, owners of samples, etc.

Certain embodiments of the present invention may include a “two for one”swap. According to these embodiments when two paid files are uploaded inexchange for one “free” file to the uploading member, there are threefiles being shared and therefore three licenses to be paid out. That is,there are two paid files purchased by the downloaders, and in exchange,one free file (or credit) goes to the uploader. The difference isdivided between all participants with 25% of the total of the twopurchases going towards the incentive file that is compensated to theuploading “member”. There is also now a 3% of the total revenuegenerated from the two purchases paid out as a direct Artist Bonusbecause three artists are being compensated. Therefore, revenuegenerated by the two paid files may be divided for example, as follows:25% to content owner 1, 25% to content owner 2, 25% to content owner 3,3% artist bonus, and 22% to the file sharing service. From a monetarystandpoint, by way of example if each download generates 50 cents inrevenue, each two for one swap generates $1. According to this example,each of the three content owners may receive 25 cents, each of the threeartists receives 1 cent (2% of a 50 cent download), and the file sharingservice receives the remaining 22 cents. As with the previousembodiments, it should be recognized that the percentages and divisionof income may be adjusted and varied in accordance with the presentinvention.

Although the present application and examples have estimated the currentvalue of an uncompressed MP3 file at about 50 cents each, an artist orcontent provider may set a higher rate based on the demand they perceivefor their file. For example, a highly anticipated release may be pricedat $1.50 depending on the market. Accordingly, in the methods of thepresent invention, the P2P provider may offer a “flexible pricing”option for the content owners to take advantage of

The “flexible pricing” options may allow artists and labels to selltheir songs at various rates, such as in even denominations to allowsimplified sharing. For example, the content owner may choose betweenthree different price tags for files. By way of non-limiting example,songs that are currently charting in the Billboard Top 200. Album chartsor the Top 40 of the Media base, R&R or Billboard Monitor charts couldbe sold at $1.50. New releases (e.g., within the last 6 months) may besold for $1 and all other catalog songs may be sold for 50 cents. Itshould be recognized that these values are only current estimates basedon the current market. Of course, the amount charged may be modifieddepending on the market. If a label or artist chooses to sell their songat a higher rate than the default catalog rate, the content owner mayreceive a higher amount of money for each transaction, for example, theymay still receive 50% of the purchase price, which may be 75 cents,rather than 25 cents.

According to certain embodiments utilizing flexible pricing plan, thefile, such as, song files, DVD files, ring tones, and the like may eachhave a separate prices depending on various factors, such as the pricethe artist or label wishes to put on the file, or the newness orpopularity of the file. According to certain embodiments, each availableprice of the flexible pricing plan, has a common denominator, which maybe the common fee for most files, for ease in determining incentivesavailable from each purchase and for determining the amount of incentivepoints or credits that would be required to redeem a file that having agreater price. Files for which a greater fee is charged may be amultiple of the common fee. For example, if the common fee is 50 centsfor a file, the fee for a more popular file may be $1.

As indicated above, certain types of points or credits may be redeemedfor merchandise. The profit margin for these transactions may vary andmay be higher than in a swap for downloads. Because only two files arebeing shared in exchange for merchandise in this transaction, there areonly two licenses and two artists to be paid. Although the averageprofit may be approximately the same as the exchange for MP3s, there isa potential for greater revenue when members exchange credits formerchandise rather than files.

The cost to the P2P provider of a gold credit (also known as a “filecredit”) would be calculated by adding the license fee (e.g., 50% or 25cents in the above example), the artist bonus (e.g., 2% or 1 cent in theabove example), and a 3 to 7 cent incentive cost to compensate themember providing the file. A silver or “half” credit may cost the filesharing service between 14½ and 16½ cents, and can cost less if it isredeemed for merchandise rather than files, due to the elimination ofadditional license fees involved.

The numbers may change depending on various factors including thecharged price per download, the agreed-to percentage for license fees orbonuses, and the type of transaction taking place. For example, the costmay be different in the case of a “two-for-one” or “three-for-one” swap.

Accordingly, the present invention includes the following methods (anexample of which is illustrated in Example 1, below), as well ascomputer code and devices for performing the method. Methods accordingto the present invention include receiving a search query from User 1operating a first end user device; searching a database for a match tothe search query; if there is at least one match, displaying one or morefiles available from at least one other user or premium servicesmatching the query; and receiving a selection of a particular file, FileA, located in a second end user device associated with User 2, or in apremium database. It is then determined whether the downloading is adirect transaction or an indirect transaction. For example, User 1 maydecide whether or not they want to use currency or credits (if they haveenough of the right type of credits) to purchase the file.Alternatively, the program or the system may automatically determinewhether currency will be required (direct transaction) or if creditswill be used (indirect transaction), for example, if User 1 hadpreviously indicated a preference to always use credits if available. Ifthe transaction is a direct transaction, the method includes chargingUser 1 a monetary amount for downloading File A. If the transaction fordownloading File A is an indirect transaction, the method includesdetermining whether User 1 has accumulated enough file credits topurchase file A, and if User 1 has accumulated enough file credits, thedownload is authorized, and User 1's account is debited for the redeemedfile credits. Methods of the present invention may further includecompensating User 2 with credit, where the amount and type of credit mayvary depending on for example the type of file User 2 provided (e.g.,movie, book, music, etc) and/or whether the transaction was direct orindirect. Methods of the present invention may also include compensatingat least one of the content owner, label company, copyright owner andthe artist(s).

Methods of the present invention may also include receiving a requestfrom a first user for at least one file; determining if said file is anauthorized file from an authorized licensor; searching for a second userpossessing a copy of said file; determining if the downloading is adirect transaction or an indirect transaction; allowing said first userto download said file; and compensating at least one of the authorizedlicensor and an artist. If the transaction is a direct transaction, themethod further includes charging said first user a fee for downloadingsaid file, and compensating said second user with credit that may beredeemed for files or merchandise. If the transaction is an indirecttransaction, the method further includes determining whether said firstuser has accumulated enough file credits to purchase said file, and ifsaid first user has accumulated enough file credits, authorizing adownload of said file and debiting an account associated with said firstuser for redeemed file credits, and compensating said second user withcredit that may be redeemed for merchandise but not for files.

As indicated above, direct transactions are transactions involving“direct” payment (e.g., by credit card, bank account transfer, paypal,and the like) from users in exchange for files. Transactions may be paidfor after each transaction, after a certain number or dollar value worthof purchases, after a certain time interval (e.g., weekly or monthly),or in advance (e.g., by a pre-purchased gift card). When a file ispurchased, the downloading member pays for example, 50 cents “directly”to the service. According to certain embodiments, currency may be usedto pre-pay for a certain number of transactions. For example,pre-purchased gift cards may be advantageous not just in the situationwhere one desires to purchase a gift of files for another person, butalso in the situation where one does not have a credit card or paypalaccount, such as minors. Alternatively, a person, such as a parent, mayprepay by credit card or paypal for a certain number of transactions, ora certain number of transactions per month. Pre-paid transactions wouldstill be considered direct transactions in accordance with the presentinvention because currency is being used to pay for the transaction,rather than earned credits.

The methodologies discussed herein can be embodied on a machine-readablemedium. Such a machine-readable medium can include code segmentsembodied thereon that, when read by a machine, cause the machine toperform the methodologies described herein.

The present invention may also include computer readable programproducts, which include a computer readable medium and a program forperforming the various methods and functions described herein.

The following examples illustrate specific embodiments of the invention.The examples set forth herein are meant to be illustrative and shouldnot in any way serve to limit the scope of the claimed invention. Aswould be apparent to skilled artisans, various changes and modificationsare possible and are contemplated within the scope of the inventiondescribed, and may be made by persons skilled in the art withoutdeparture from the spirit of the invention.

EXAMPLES Example 1

FIG. 2 is a flow diagram of an incentive program offered by the P2Pservice provider according to certain embodiments of the presentinvention. The incentive program may be implemented as a softwareprogram run by a processor included in the P2P service provider codeaccording to corresponding program instructions stored in its localmemory.

In step 100, the P2P service provider server (P2P server) receives asearch query from User 1 operating a first end user device. In step 102,the server searches its discography database for a match to the searchquery. If there is at least one match, in step 104, the server displaysone or more files available from other members or premium servicesmatching the query. In step 106, the server receives selection of aparticular file, File A, located in a second end user device associatedwith User 2, or in the premium database, if none is found fordownloading from a second end user device.

In step 108, a determination is made as to whether the downloading is adirect transaction or an indirect transaction. If the transaction is adirect transaction, then the user is to pay a monetary amount for thedownloading of File A. The server thus proceeds, in step 110, to chargeUser 1 a monetary amount (Dollar, Euro, etc.) for the downloading ofFile A. By way of example, a price point of 50 cents may be chosen(because 50 cents is approximately half the charge of popular free,unauthorized, and emerging digital download sites selling files for 99cents). The server may automatically run a purchasing routine where User1 is asked a series of questions, including questions for effectuatingpayment for the downloading of the file, such as for example, creditcard information, bank account information, or the like. The User mayalso have the option of selecting how they would like to pay for thefile, for example, with a credit card, paypal, debiting a gift card,deducting credits from the user's account and the like. Informationregarding a user's payment accounts or methods and payment preferencemay be stored on the server. For example, User 1's account informationmay include credit card information, bank account information and thelike, such that purchases may be one-click type purchases.

In step 112, the server compensates User 2 with a credit, (which may bereferred to for example, as a silver credit), for providing File A toUser 1. This may be done, for example, by retrieving User 2's accountinformation and increasing the user's credits by e.g., one (although anyunit of measure may be used in accordance with the present invention).Credits may be used to purchase at least one file, or a portion thereof,at a later time.

In steps 114-124, the server proceeds to compensate the contentowner/label company, and/or artist (if different than the owner), andthe like, associated with File A. In this regard, in step 114, theserver identifies the label company (if any) associated with File A. Instep 116, the server calculates a predetermined fixed amount orpercentage, such as, for example, 50%, of the purchase price paid byUser 1. In step 118, the server credits the content owner/labelcompany's account that is maintained by the server, with the calculatedamount.

In step 120, the server identifies the artist associated with File A. Instep 122, the server calculates a predetermined fixed amount orpercentage, such as, for example, 2%, of the purchase price paid by User1. In step 124, the server credits the artist's account that ismaintained by the server, with the calculated amount.

It should be understood that similar steps may be repeated withadditional parties for whom the P2P network provider decides orcontracts to give an amount or percentage or money associated withparticular transactions. It should also be understood that it may not benecessary to compensate the artist and/or the content owner, dependingon what agreement is worked out with each of them and/or otherauthorized licensor.

Referring to step 108, if the transaction for downloading File A is nota direct purchase transaction, then it is deemed to be an indirecttransaction where User 1 seeks to redeem his or her file credits for thedownload of File A. Thus, in step 126, a determination is made as towhether User 1 has accumulated enough file credits by examining User 1'saccount. If User 1 has accumulated enough file credits of the right type(certain types of credits may not be redeemable for downloads), thedownload is authorized in step 128, and User 1's account is debited forthe redeemed file credits.

In step 130, the server then compensates User 2 with a store credit,(which may be referred to for example, as a blue credit), for providingFile A to User 1. This may be done, for example, by retrieving User 2'saccount information and increasing the user's store credits by one(although any unit of measure may be used in accordance with the presentinvention). Blue credits (which are similar to silver credits but maynot be redeemed for other files because that does not provide any way ofcompensating the content owner, musician and the like) may be used forstore credit. According to certain embodiments, no distinction is madebetween store credits given for providing File A to User 1, regardlessof whether the transaction is direct or indirect, but a distinction maybe made with respect to downloading files.

Example 2

FIG. 3 is an architecture diagram of a data processing system suitableas a host for a P2P server in accordance with certain embodiments of theinvention. The data processing system includes a processor 3600 having acentral processing unit (CPU) 3610, a memory cache 3620, and a businterface 3630 operatively coupled via a system bus 3635 to a mainmemory 3640 and an I/O control unit 3645. The I/O control unit 3645 isoperatively coupled via an I/O local bus 3650 to a storage controller3695, a video controller 3690, a keyboard controller 3685, a networkcontroller 3680, and an I/O device controller 3675.

The storage controller 3695 is operatively coupled to a storage device3655. Computer program instructions for implementing the P2P server,which may include for example, a “two for one” incentive program arestored on the storage device until the processor retrieves the computerprogram instructions and stores them in the main memory. The processorthen executes the computer program instructions stored in the mainmemory to implement the features of the P2P server as described herein.

A video controller 3690 may be operatively coupled to an electronicdisplay device (e.g., a video monitor 3660) for display of a userinterface for the P2P server. The keyboard controller 3685 is operablycoupled to a keyboard 3665 for input of user commands to the P2P server.

A network controller 3680 may be operatively coupled to a communicationsdevice 3696. The communications device may be adapted to allow a P2Pserver hosted by the data processing system to communicate via acomputer network such as the Internet with other computer devices on thecomputer network as described herein.

Example 3

FIG. 4 depicts a flow diagram of a “two-for-one” incentive programoffered by the P2P service provider according to certain embodiments ofthe present invention. The incentive program may be implemented as asoftware program run by a processor included in the P2P service providercode according to corresponding program instructions stored in its localmemory.

According to this method, after Uploader #1 logs onto the monitored filesharing community (the Monitored P2P Network), and his or her virussoftware is checked for the latest update, his or her “shared folder” isopened to the network for trading. Next Downloaders #1 and #2 (who maybe the same or different members) each finds a file on Uploader #1'shard drive through their search that they wish to purchase. Each makes apayment (e.g. 50 cents) to the P2P service for Files A and B, creating$1.00 gross. These are direct transactions. The content owners of FilesA and B, e.g., music Labels A and B are then compensated 50% of eachpurchase (25 cents each). A portion of this compensation may be used tocompensate any artists associated with the files, but that is governedby the agreement between the content owner and the artists.

Uploader 1 may then receive a “file credit” or a “gold credit” for thedirect transactions in which Uploader 1 provided two files purchased byDownloaders #1 and #2. Uploader #1 can then redeem this file credit formerchandise from the Online store. Or, as depicted in FIG. 4, the creditmay be used to redeem a File C from Uploader #2 (an indirecttransaction). A licensing fee of 25 cents is now due to Label C as thecontent owner of File C. This leaves a 25 cent gross revenue for the P2Pservice. From this amount, the 2% Artists Bonus may now be paid directlyfrom the P2P service to Artists A, B, and C (and/or to the Artist'sRights Organization) who receive 1 cent each.

From the remaining 22 cents shown on FIG. 4, Uploader #2 receives 50%(in this example, 11 cents) in the form of Store Credit (which may alsobe referred to as a “blue credit”) for uploading File C to Uploader #1who provided files to members paying “directly” in cash. Store Creditmay only be used to purchase merchandise and cannot be used towards thepurchase of a file. The cost of licensing the music from content ownersmay make compensation with file credits at this second level (in whichUploader # 1 is redeeming credits through an indirect transaction toupload a file) cost prohibitive. Store credits can be redeemed formerchandise through the service's Online Store. The cost of a StoreCredit to the company ranges from 3 to 7 cents, but the member redeemsit for 11 cents generating a gross revenue of 4 to 8 cents.

It is contemplated that a new level of credit may be provided in lieu ofstore credit or in exchange for a certain number of store credits, inwhich Uploaders may be awarded credit for indirect transactions that maybe redeemable for files—but many more such credits must be earned beforea file may be purchased, so the content owner in this secondary indirecttransaction may be compensated. A system may be set up in which forexample, 10 credits awarded for indirect transactions may be redeemedfor a file. Such a system may eventually break down from a financial ormarketing standpoint. Users may not appreciate or be motivated byreceiving smaller and smaller partial credits for uploads.

In this example, after Uploader #2 is compensated with one Store Credit,the P2P Service Provider realizes a gross revenue of 11 cents from bothtransactions. The member's incentive ranges from approximately 10% perfile where they earn a Store Credit in an indirect transaction up to 25%per file when they earn a Silver Credit in a direct transaction, or moredepending on the type of credit.

As would be apparent to those skilled in the art, this example may bemodified in many ways for example, to provide a three-for-one incentiveprogram, in accordance with the present invention. Non-limiting examplesof three-for-one programs in accordance with the present invention aredepicted in FIG. 5 and FIG. 15. In a three-for-one system for example,Uploader #1 may receive a “file credit” for the direct transactions inwhich Uploader 1 provided three files purchased by Downloaders #1, #2and #3, which would generate a gross of $1.50. Uploader #1 can thenredeem this file credit for merchandise from the Online store, or redeemthe credit for a file. In the three-for-one scenario, a licensing fee of25 cents for example, would be due to each of the three labels relatingto files downloaded by Downloaders #1-3, as well as to the fourth labelrelating to the file for which Uploader #1 redeemed the file credit, fora total of $1, leaving a 50 cent gross revenue for the P2P service, fromwhich 4 cents in Artists bonuses (1 cent each for four artists) are paidout. Of the 46 cents remaining, a percentage or fixed amount (such as 11cents as in the example depicted in FIG. 5) may go to Uploader #2 forstore credit. Accordingly, before the incentive is paid to Uploader # 2,a three-for-one program provides 46 cents for four transactions (11.5cents per file) as opposed to 22 cents for three transactions (7.33cents per file) in the two-for-one swap scenario. Similarly, a greatergross revenue may be obtained for the P2P service in a four-for-one swapand so on.

The methods and systems of the present invention may be also be modifiedto eliminate the 2% artist bonus, to change the amounts charged, tochange the percentages provided to content providers/labels, to changethe amount or type of credits awarded, etc. For example, in theembodiments of FIG. 15, the amount charged is $1 per file downloaded. Byway of further example, in the embodiments of FIG. 6, no artist bonus ispaid.

FIG. 7 is a flow diagram depicting the indirect transaction portion ofFIG. 4 in which Uploader #1 redeems a file credit. As depicted in FIG. 4(discussed in Example 3), Uploader #2 transferred one file (File C) tocompensate Uploader #1 in exchange for Files A and B to payingDownloaders #1 and #2 of files A and B. This completed the initial paidDirect Transaction. Uploader #2 then receives store credit, which inFIGS. 4 and 7 may be for example 50% (e.g., 11 cents) of the amountremaining from the $1 gross after the Labels and/or artists from allthree transactions are compensated. This store credit may be redeemed atthe online store, but cannot be used to download files.

Because there may be a mark up on the merchandise sold through theonline store ranging from 35% to 75%, an additional 4 to 8 cents inadditional revenue may be generated for the P2P service. Combined withthe 11 cents received from the Direct transaction, this gives the P2Pservice roughly 15-19 cents gross revenue before operating costs andtransaction fees are deducted.

FIG. 8 is another flow diagram depicting a “two for one” swaptransaction, as in FIG. 4, in which file credits are awarded to Uploader#1, which are redeemed at either the online store or for a file. Thisdiagram also includes a purchase incentive or “Purchase Points” whichmay be rewarded to the downloader and can also be redeemed for files ormerchandise, but at a lower percentage than they would receive foruploading a file. (e.g., Purchasing twenty files would allow the user toredeem one File Credit).

FIG. 9 is a flow diagram depicting the situation in which Uploader # 1redeems file credits at an online store, rather than redeeming them forfiles. A file credit may be redeemed for two store credits for example,and used towards 22 cents of the member's retail purchase. If Uploader#1 only has a “half credit”, i.e., only one user has paid to downloadone of their files, then Uploader #1 may redeem the “half credit” for 11cents worth of store credit.

As depicted in FIG. 9, because only two files are downloaded, only twoLabels are compensated, and only two artist bonuses to be paid (insteadof three). Thus, the licensing and bonus cost to the P2P provider may beonly 52 cents, as opposed to 78 cents when Uploader #1 redeems creditfor files. If Uploader #1's credits are worth 22 cents in store credit,the gross margin for the P2P provider is 26 cents (plus 8 to 16 centsdue to the difference between the wholesale price and the mark up ofstore merchandise). Additionally, under this scenario, there is noUploader #2 and thus, no incentive paid out to Uploader #2.

Example 4

According to further embodiments, premium digital files may bepurchased, for example, from the central server provided by the P2Pservice provider or through an alliance with other music providers.These files may be purchased at a higher price than MP3 type files,e.g., for 99 cents, with licensing fees for premium files likely costingmore than for MP3 files, for example 65 cents per file. Incentiveprograms may also be in place relating to the premium digital files. Thetypes or amounts of credits required to redeem a premium digital file orawarded for uploading premium digital files may vary depending on thetype of the file. For example, four silver credits (or 2 gold credits)may be required to redeem a digital file (e.g., a .wav or .aaf file) asopposed to two silver credits (or 1 gold credit) required to redeem alesser quality MP3 file.

FIG. 10 depicts an example of a situation in which four files arepurchased for which Uploader #1 receives four silver credits, allowinghim to redeem the credits for one premium file. The four files aredirectly purchased for 50 cents each yielding a $2 gross. Of that, $1 ispaid in license fees for the four downloaded files and 4 cents isprovided in artist bonus. Of the remaining 96 cents, an average of 65cents may be paid as a license fee to the label authorizing the premiumfile download (the going rate on a license fee for a premium digitalfile ranges from 60 cents to 70 cents), and another artist bonus of 2cents (i.e., 2% of $1.00) is provided to the artist of the premium file,yielding 29 cents profit to the P2P provider relating to the fivetransactions. Certain services or providers may have restrictions on thenumber of times a premium download can pass from one computer toanother. Such restrictions may eventually be removed however, under themethods of the present invention where the content provider iscompensated for each transaction.

As with the premium digital file scenario, ring tone, movie and otherfiles may be purchased for different prices, and may be redeemed usingdifferent types and/or numbers of credits. Just as a premium digitalfile costs more to download directly and requires four credits to redeemindirectly, a movie download may cost even more or require even morecredits to redeem.

Example 5

Users may desire to burn CDs of certain music compilations, for example,a CD containing their favorite songs to play in their car CD player.Such burning of CDs may be possible from the P2P service website, or itmay be possible for users to do this on their computers after files aredownloaded.

It should be noted that while copying purchased music to a CD for onesown personal use may be legitimate, burning CDs for distribution, saleor use by others, may constitute a copyright violation and may beillegal. Burning CDs for such illegal purposes is not condoned by thepresent inventor and may be discouraged by the P2P provider.

The present invention provides methods and systems for legally sharingmusic with friends in the following manner. According to certainembodiments, one member may upload the song or songs into a “drop box”where their personal friends or acquaintances can find songs that theyhave talked about through this system, or offline by word of mouth.Non-limiting examples of possible drop box systems and methods inaccordance with the present invention are depicted in FIG. 11. The dropbox may be for example a dedicated space on the central server wherefiles could be stored so that a second user can find them, for example,when their friend is not online by entering their username. Instead of auser burning a copy of music for friends, they can tell their friendthat the user will upload the files into their drop box, and the friendcan download the files from the user's account. The friend must pay todownload the files. According to certain embodiments, the user/uploadermay be given some form of credit for creating an interest in the music.

Therefore, the present invention includes methods that include allowinga guest user to access a predetermined subset of files, which access isauthorized by a registered user of a peer-to-peer network; wherein saidguest user may preview one or more file in the subset of files; andwherein said guest user may purchase one or more file in the subset offiles. The access may be granted in a variety of ways, such as by adynamic link sent to the guest user by email. The guest user may beallowed to preview the file, for example by streaming samples of thefiles or viewing read only versions of the files to avoid additionalephemeral fees charged by content owners. It is also contemplated thateither user be able to create a temporary playlist, for example by“dragging and dropping” clicking an “add to playlist” button or byhighlighting, copying and pasting at least one link into said buffer.This playlist may interface with an audio player which would play thesample links and would also allow the member to play songs already intheir library. The guest user may be prompted with instructions topurchase or redeem said files over a peer-to-peer network, download thefile later, or purchase said files through a premium content provider.The buffer may connect to the user's personal database allowing them toalso listen to and/or view files previously created or acquired. Usersmay create a plurality of playlists, and may be prompted to save, editor delete playlists.

Methods of the present invention may include requiring payment for thedownload from the guest user or the registered user. Optionally, theregistered user or guest user may prepay for the download. The one ormore files may be downloaded directly from the registered user, forexample if the registered user is logged into the system. But it iscontemplated that the one or more files may be downloaded from a thirduser, for example if the registered user if not logged onto the system.Thus, according to these embodiments, the guest user can see and have atleast some access to a registered user's playlist, but the actualdownloaded file may come from a third user.

It is also contemplated that protections may be provided for a member toinvite certain friends to view only particular drop boxes or theirpersonal playlists lists of files, without gaining complete access toother drop boxes or files, or to the complete account. It may also bepossible for more than one friend to view or access the drop box at atime, or for the friend to access the drop box in the event themember/uploader logs off

It is further contemplated that a member can create a drop box or otherlist of one or more files, and send an email to friends that forwardssnippets of those files to the friends or a link to the member's dropbox. A link or way in which the friends can download the files may beprovided. The Uploading member might also be prompted to purchase thefiles for the downloading member through a pre-payment method. Anotherembodiment of the invention would use files “wrapped” in digital rightsmanagement (DRM) protection to control the sampling, use, or furtherdistribution of the file.

The present invention includes a computer readable program productcomprising a computer readable medium and a program that allows a firstuser to create lists of files, for which a second user may have limitedaccess, and may be able to purchase for download.

Example 6

Chat Rooms may be available on the website, for example in differentgenres and in different artist sections, allowing consumers tocommunicate instantly with questions about different music and allowingpersonalized trades to be made. These chat rooms may operate as songsare played over an online radio station. The online radio station may bead supported or ad free. As music is playing on the online radiostation, a link may be provided indicating the name of the artist andsong, allowing members to quickly download the song that is playing, orany of the recently played songs (e.g., the last 10 songs may be listedwith links to download any of those songs). Which online radio stationis playing may vary for example based on a member's music preference asinputted by the member, as determined based on previous downloads, ordepending on which chat rooms the member is in.

Members may be able to post reviews of their favorite artists or genresof music and other unique music that exists in their collection.Consumers would click on the links in these reviews and go straight tothat member's hard drive to download those tracks.

It is contemplated that members may be able to be a DJ for example, bysending a file having them talk over the introduction of a song, phoningin their request, or sending a separate clip that would be added beforethe song starts.

Example 7

A “This Lane Closed” feature may be used by a member to turn filesharing off without interrupting downloads in process. This would allowany downloads in process to be completed, but not allow any newdownloads to begin. FIGS. 12, 13 and 14 are non-limiting examples ofpossible screen shots of various stages of “this lane closed” featuresaccording to certain embodiments of the present invention. If the userlogs off before downloads in process are completed, they will notreceive credit for those interrupted partial downloads. The member mayselect this option, for example, when the member is getting ready to logoff of the P2P network. As depicted in FIG. 12, the user may have anoption of clicking on a “lane closing on/off” button. Alternatively, a“This Lane Closed” feature may be automatically implemented simply bythe user beginning a logging off or shutting down process. Accordingly,in the methods of the present invention, in a process of said seconduser logging off, any transactions in progress may be permitted to becompleted, and any first users may be informed that said second user islogging off and said second user's files are unavailable for download.Such notifications that a lane closing is in progress or completed aredepicted in FIGS. 13 and 14

Accordingly, the present invention includes a computer readable programproduct comprising a computer readable medium and a program that allowsa user to turn file sharing off without interrupting downloads inprocess and allowing any downloads in process to be completed, but notallow any new downloads to begin.

Example 8

According to further embodiments of the invention, bit-torrent may beused to speed up downloads by transferring different segments of a filefrom different members. Although it may be simpler when one member isbeing compensated for providing a file, it may be feasible to dividecompensation among two or more members. The present methods, programs,systems and the like may be modified to utilize bit-torrent, as would beapparent to those skilled in the art.

Example 9

This example sets forth various methods of variable pricing of filesaccording to different embodiments of the present invention.

According to certain embodiments, all of the prices have a commondenominator, such as 25 ç. Thus, the prices of various files may be asfollows:

25 ç

50 ç

75 ç

$1.00

$1.25

$1.50

$1.75

$2.00 (e.g., Videos And Ring Tones)

In embodiments where various prices are used for different files,different credits or points may be earned by the downloader depending onthe file purchased and the price of that file. Examples of points orcredits earned for various files may be as follows:

Purchase 1 file @ 25 ç=Receive 1 File Point

Purchase 10 files @ 25 ç=10 File Points (1 Silver Credit)

Purchase 20 files @ 25ç=20 File Points (1 Gold Credit)

Purchase 1 file @ 50 ç=2 File Points

Purchase 5 files @ 50 ç=10 File Points (1 Silver Credit)

Purchase 10 file @ 50 ç=20 File Points (1 Gold Credit)

Purchase 1 file @ 75 ç=3 File Points

Purchase 4 files @ 75 ç=12 File Points (1 Silver Credit+2 File Points)

Purchase 7 files @ 75 ç=21 File Points (1 Gold Credit+1 File Point)

Purchase 1 file @ $1.00=4 File Points

Purchase 3 files @ $1.00=12 File Points (1 Silver Credit+2 File Points)

Purchase 5 files @ $1.00=20 File Points (1 Gold Credit)

Purchase 1 file @ $1.25=5 File Points

Purchase 2 files @ $1.25=10 File Points (1 Silver Credit)

Purchase 4 files @ $1.25=20 File Points (1 Gold Credit)

Purchase 1 file @ $1.50=6 File Points

Purchase 2 files @ $1.50=12 File Points (1 Silver Credit+2 File Points)

Purchase 4 files @ $1.50=24 File Points (1 Gold Credit+4 Points)

Purchase 1 file @ $1.75=7 File Points

Purchase 2 files @ $1.75=14 File Points (1 Silver Credit+4 File Points)

Purchase 3 files @ $1.75=21 File Points (1 Gold Credit+1 File Point)

Purchase 1 file @ $2.00=8 File Points

Purchase 2 files @ $2.00=16 File Points (1 Silver Credit+6 File Points)

Purchase 3 files @ $2.00=24 File Points (1 Gold Credit+4 File Points)

In embodiments where various prices are used for different files,different credits or points may be earned by the uploader depending onthe file purchased and the price of that file. Examples of points orcredits earned for various files may be as follows:

Sell 1 file @ 25 ç=5 File Points

Sell 2 files @ 25 ç=10 File Points (1 Silver Credit)

Sell 3 files @ 25 ç=15 File Points (1 Silver Credit+5 File Points)

Sell 4 files @ 25 ç=20 File Points (1 Gold Credit)

Sell 1 file @ 50 ç=10 File Points (1 Silver Credit)

Sell 2 files @ 50 ç=20 File Points (1 Gold Credit)

Sell 3 file @ 50 ç=30 File Points (1 Gold+Silver)

Sell 4 files @ 50 ç=40 File Points (2 Gold Credits)

Sell 1 file @ 75 ç=15 File Points (1 Silver+File 5 Points)

Sell 2 files @ 75 ç=30 File Points (1 Gold+1 Silver)

Sell 3 files @ 75 ç=45 File Points (1 Gold+1 Silver+5 File Points)

Sell 4 files @ 75 ç=60 File Points (2 Gold Credits)

Sell 1 file @ $1.00=20 File Points (1 Gold Credit)

Sell 2 files @ $1.00=40 File Points (2 Gold Credits)

Sell 3 files @ $1.00=60 File Points (3 Gold Credits)

Sell 4 file @ $1.00=80 File Points (4 Gold Credits)

Sell 1 file @ $1.25=25 File Points (1 Gold Credit+5 File Points)

Sell 2 files @ $1.25=50 File Points (2 Gold+1 Silver)

Sell 3 files @ $1.25=75 File Points (3 Gold+1 Silver=S File Points)

Sell 4 files @ $1.25=100 File Points (4 Gold Credits) ($1.00 StoreCredit)

Sell 1 file @ $1.50=30 File Points (1 Gold+1 Silver)

Sell 2 files @ $1.50=60 File Points (3 Gold Credits)

Sell 3 files @ $1.50=90 File Points (4 Gold+1 Silver)

Sell 4 files @ $1.50=120 File Points (6 Gold Credits)

Sell 1 file @ $1.75=35 File Points (1 Gold+1 Silver+5 File Points)

Sell 2 files @ $1.75=70 File Points (3 Gold+1 Silver)

Sell 3 files @ $1.75=105 File Points (5 Gold+5 File Points)

Sell 4 files @ $1.75=140 File Points (7 Gold Credits)

Sell 1 file @ $2.00=100 File Points (5 Gold Credits)

Sell 2 files @ $2.00=200 File Points (10 Gold Credits)

Sell 3 files @ $2.00=300 File Points (15 Gold Credits)

Sell 4 files @ $2.00=400 File Points (20 Gold Credits)

According to certain embodiments, a certain number and/or type of pointsmay be redeemable for a certain amount of store credit. For example, 100points may be redeemable for one dollar of store credit.

Similarly, a certain number and/or type of points may be redeemable forfiles. The following is an example of a way in which credits may beredeemed for files.

25 ç (Redeem with 1 Silver Credit)

50 ç (Redeem with 1 Gold Credit)

75 ç (Redeem with 1 Gold, and 1 Silver)

$1.00 (Redeem with 2 Gold Credits)

$1.25 (Redeem with 2 Gold and 1 Silver)

$1.50 (Redeem with 3 Gold Credits)

$1.75 (Redeem with 3 Gold and 1 Silver)

$2.00 (Redeem with 4 Gold Credits)

Files may also be traded for store credit, for example as follows:

Trade 1 File @ 25 ç=5 Store Points

Trade 1 File @ 50 ç=10 Store Points (1 Store Credit)

Trade 1 File @ 75 ç=15 Store Points

Trade 1 File @ $1.00=20 Store Points (2 Store Credits)

Trade 1 File @ $1.25=25 Store Points

Trade 1 File @ $1.50=30 Store Points (3 Store Credit)

Trade 1 File @ $1.75=35 Store Points

Trade 1 File @ $2.00=40 Store Points (4 Store Credits)

According to certain embodiments, certain rules may be set up, forexample to optimize profitability or to provide various incentives.Examples of such rules include one or more of the following: (1) storepoints cannot be redeemed for files; (2) content providers requiring acertain percentage of the purchase price or profit, cannot sell theirfiles or set a price that is less than a certain amount (such as $1, asdepicted in FIG. 15 where the content owners are receiving over 60% inroyalties); (3) for trades for small amounts, such as less than $1, thedownloader must set up a paypal or similar account with a minimumbalance or pay a transaction fee. Another example of a possible rule inaccordance with the present invention, is that members who wish toremain anonymous cannot redeem credits for merchandise because the usermust be identified to receive shipments. Yet another example of apossible rule in accordance with the present invention is that memberswho log off without first enabling the “lane closing” feature andallowing downloads in process to be completed will not receive creditfor those downloads.

A further example of rules may be implemented when a member shares afile with a guest using a drop box feature. In these embodiments, themember receives “purchase points” when they prepay in cash for a file,even if they are not online when the file is retrieved. Uploaders alsoreceive credits (e.g., half credits) for each file they share, but onlyif they are online to upload the file at the time it is retrieved. Thisincentive keeps more members on the system sharing and supplying musicfor others, Finally, members sharing files receive purchase points onlywhen they purchase the files with cash, but not when they use credits toredeem a file.

Different ways in which one can earn different amounts and kinds ofcredits may be as follows:

TRADING RATES AND EARNING FILES

Sell 1 file @ 25 ç=½ Silver Credit

Sell 2 files @ 25 ç=1 Silver Credit

Sell 1 file @ 50 ç=1 Silver Credit

Sell 2 files @ 50 ç=1 Gold Credit

Sell 1 file @ $1=1 Gold Credit

PRICING—25 CENTS FILES (Silver Credit)

Purchase 10 files @ 25 ç

Sell 2 Files @ 25 ç

Sell 1 File @ 50 ç

50 CENT FILES (Gold Credit)

Purchase 10 files @ 50 ç

Sell 2 Files 50 ç

Sell 1 File @ $1

75 CENT FILES

Purchase 10 files @ 75 ç

Sell 6 files @ 25 ç(3 Silvers)

Sell 2 files @ 50 ç+2 Files @ 25 ç(1 Gold+1 Silver)

ONE DOLLAR FILES

Purchase 10 Files @ $1

Sell 8 Files @ 25 ç(4 Silvers)

Sell 6 Files @ 25 ç+1 File 50 ç (4 Silvers)

Sell 4 Files @ 25 ç+2 Files @ 50 ç(4 Silvers)

Sell 2 Files @ 25 ç+3 Files 50 ç(4 Silvers)

Sell 4 Files @ 50 ç(2 Golds)

ONE DOLLAR TWENTY FIVE CENT FILES

Purchase 10 Files @ $1.25

Sell 2 Files @ $1.25 (2 Golds+1 Silver)

Sell 10 Files @ 25 ç (5 Silvers)

Sell 8 Files @ 25 ç+1 File @ 50 ç(5 Silvers)

Sell 6 Files @ 25 ç+2 Files 50 ç (5 Silvers)

Sell 4 Files @ 25 ç+3 Files 50 ç (5 Silvers)

Sell 2 Files @ 25 ç+4 Files @ 50 ç (5 Silvers)

ONE DOLLAR FIFTY CENTS

Purchase 10 Files @ $1.50

Sell 2 Files @ $1.50 (3 Golds)

Sell 4 @ Files 75 ç (3 Golds)

Sell 12 Files @ 25 ç (6 Silvers)

Sell 10 Files @ 25 ç+1 File @ 50 ç(6 Silvers)

Sell 8 Files @ 25 ç+2 File @ 50 ç(6 Silvers)

Sell 6 Files @ 25 ç+3 Files 50 ç(6 Silvers)

Sell 4 Files @ 25 ç+4 Files 50 ç (6 Silvers)

Sell 2 Files @ 25 ç+5 Files 50 ç(6 Silvers)

Although this invention has been described in certain specificembodiments, many additional modifications and variations would beapparent to those skilled in the art. For example, member credits couldbe redeemed for cash instead of music and merchandise, or, the artistbonus could be excluded entirely. However, distributing a direct bonusto an artist would encourage them to license their catalogs and buildgood faith. For at least these reasons, it is believed that programsaccording to the present invention provide superior models, withoutruling out cash distributions to members or exclusion of the artistbonus program. It is therefore to be understood that this invention maybe practiced other than as specifically described. Thus, the presentembodiments of the invention should be considered in all respects asillustrative and not restrictive.

1. A file sharing method comprising receiving a request from a firstuser computing device for at least one file; confirming that said fileis a licensed file from an authorized licensor; searching for a seconduser computing device possessing a copy of said file; determiningwhether the downloading is a direct transaction in which the first userwill pay a fee to download the file, or an indirect transaction in whichthe first user will redeem files using credits from a first user'saccount on a server to download the file; when the transaction is adirect transaction, the method further comprises charging said firstuser a fee for downloading said file, and compensating said second userwith credit to a second user's account on the server, which credit maybe redeemed for files or merchandise; when the transaction is anindirect transaction, the method further comprises determining whethersaid first user has accumulated enough file credits in the first user'saccount to redeem said file, and when said first user has accumulatedenough file credits, initiating download of said file, debiting thefirst user's account for redeemed file credits, and compensating saidsecond user with credit to the second user's account, which credit maybe redeemed for compensation but not for files; allowing said first userto download said file; and compensating the authorized licensor.
 2. Themethod of claim 1, further comprising compensating at least one artistassociated with said file.
 3. The method of claim 1, further comprisingcompensating the first user with credit to the first user's account. 4.The method of claim 1, wherein the amount of credit compensated to saidsecond user's account depends on the file uploaded.
 5. The method ofclaim 1, wherein the at least one file is selected from the groupconsisting of music, movies, games, video games, television programs,videos, podcasts, software, advertisements, artwork, ring tones,literature and photos.
 6. The method of claim 1, further comprisingregistering said first user, and allowing said first user to access anentire file before receiving a request from said first user computingdevice for at least one file.
 7. The method of claim 1, furthercomprising determining whether said second user computing device hasupdated virus software before allowing said first user to download saidfile.
 8. The method of claim 1, further comprising determining whethersaid first user computing device has updated virus software beforeallowing said first user to download said file.
 9. The method of claim1, further comprising scanning said file for malicious files andnotifying at least one of said first user and said second user when amalicious file is detected.
 10. The method of claim 1, wherein saidsearching includes searching for a digital fingerprint associated with afile.
 11. The method of claim 1, wherein said fee is selected from acommon fee or a multiple of said common fee.
 12. The method of claim 1,wherein in a process of said second user computing device logging off,the second user computing device is notified that the second user'saccount will not receive credits when said second user computing devicelogs off before any transactions in progress are permitted to becompleted, and when the second user does log off any first users of anytransactions in progress are informed that said second user is loggingoff and said second user's files are unavailable for download.
 13. Themethod of claim 1, wherein at least one of said first and second usersare provided with targeted advertising based on at least one of priorfile downloads, a registration profile, and merchandise redemptions. 14.The method of claim 1, wherein the file becomes licensed on a certaindate after the date said request is received, and the first usercomputing device is not allowed to download the file until said date.15. The method of claim 1, wherein when the at least one file is notlicensed, the method further comprises allowing said first usercomputing device to submit a request that the file become licensed. 16.The method of claim 1, further comprising allowing said first user tosort various criteria in a database of files before requesting at leastone file.
 17. The method of claim 1, wherein after the first usercomputing device has downloaded or uploaded at least two files such thatsaid first user has a database of at least two files, the method furthercomprises allowing said first user to sort said database.
 18. A methodcomprising: receiving a request from a first user computing device forat least one file; confirming that said file is a licensed file from anauthorized licensor; searching for a second user computing devicepossessing a copy of said file; determining whether the downloading is adirect transaction in which the first user will pay a fee to downloadthe file, or an indirect transaction in which the first user will redeemcredits from a first user's account on a server to download the file;when the transaction is a direct transaction, the method furthercomprises charging said first user a fee for downloading said file, andcompensating said second user with credit to a second user's account onthe server, which credit may be redeemed for files or merchandise; whenthe transaction is an indirect transaction, the method further comprisesdetermining whether said first user has accumulated enough file creditsin the first user's account to redeem said file, and when said firstuser has accumulated enough file credits, initiating download of saidfile, debiting the first user's account for redeemed file credits, andcompensating said second user with credit to the second user's account,which credit may be redeemed for compensation but not for files;allowing said first user to download said file; and compensating theauthorized licensor; further comprising allowing a guest user computingdevice to access a predetermined subset of files, which access isauthorized by a registered user of a peer-to-peer network; allowing aguest user to preview one or more file in the subset of files; andallowing a guest user computing device to download one or more files inthe subset of files.
 19. The method of claim 18, further comprisingrequiring payment from at least one of said guest user and saidregistered user for said download.
 20. The method of claim 18, furthercomprising allowing at least one of said guest user and said registereduser to prepay for said download.
 21. The method of claim 18, whereinthe one or more files is downloaded directly from the registered usercomputing device.
 22. The method of claim 18, wherein the one or morefiles is downloaded from a third user computing device.
 23. The filesharing method of claim 1, wherein file credits to be used in anindirect transaction to redeem a file, are credits redeemable for filesor merchandise, which were accumulated by said first user being thesecond user in two or more previous direct transactions.